SAP: Industry Leader At A Reasonable Price

May 12, 2022 2:03 AM ETSAP SE (SAP) Stock, SAPGF StockSAP, SAPGF2 Comments
Eugenio Catone
4.32K Followers

Summary

  • I consider the current price reasonable to open an initial position and eventually average it down if the drop continues.
  • SAP customers generate 87% of total global commerce ($46 trillion).
  • The size of the global enterprise applications market is expected to reach $468.2 billion by 2027, registering a CAGR growth of 9%.

SAP System Software Automation concept. Businessman presses virtual button SAP

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Investment Thesis

SAP (NYSE:SAP) has a significant competitive advantage thanks to its ERP software and is currently 40% far from its all-time high. The company's revenues have always been steady and growing, so I consider this drop

This article was written by

4.32K Followers
Hi there, welcome to my profile. My name is Eugenio Catone, I live in Italy and I am 27 years old.In 2023 I graduated in Business Administration and I completed CFA level 1 in 2024. I am currently a Popular Investor on the investing platform eToro, you can see there my public portfolio. My interest in financial markets started about 5 years ago when I accidentally came across a video about trading. That was the spark that introduced me to a new world, but over time I realized that it was not my path: too many charts, lines, and not very concrete concepts for a pragmatic person like me. I needed something different and that I found in fundamental analysis. It is a totally different approach and one that evaluates the actual results achieved by a company rather than the candlesticks made by its price per share. That was the turning point for me and I have not stopped learning ever since. I mainly invest in stocks and ETFs; I prefer US companies but I often analyze European or Chinese companies as well. Being young, my investments typically have a very long-term view; I often take a contrarian view.Seeking Alpha is a way for me to express my opinion and meet new people. My articles are intended as pure entertainment and I hope you will find them interesting.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of SAP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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